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  • New Members

    Unable to pay final BTL mortgage payment?

    1) Several things

    • Don't mortgage to more than 75% LTV
    • Add value when you buy - such as by refurbishing.
    • Keep track of what the market is doing. You shouldn't be surprised by the property being in negative equity,
    • Should I be getting near then end of a mortgage and it was in negative equity I would look at paying down the mortgage early.

    2) Probably 4 to 8 times but I having been doing it for 20 years

    3) Repossess,

    Note that with an IO mortgage you can still pay off the capital early. There is generally some limit to how much but it may well be more than you would pay off in the early stages of a repayment mortgage. I have never had a repayment mortgage. My residential ones were IO with an endowment. My first home went into negagtive equity (by £500). Later when they were warning about endowments not pamking enough to pay off the amount intended I started paying down my mortgage.

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    for what its worth I have 4 properties that are in negative equity to this day

    I did 85% in 2005 and then we had the crash

    Price in 2005  £90000 mortgage £76000

    Price in 2007 £50000 Mortgage  £76000

    Price in 2017 £75000 Mortgage £76000

    The rate of interest - 1.9%  so my Mortgage is very small and I fund Pensions and ISA

    I am not due to repay the Mortgages for 10 years.  I will then sell the property into my company after I draw my pensions in 7 years

    The good thing is the Cash Flow I have Rent £475 Mortgage £120 so they are casflow positive by £355 a month

    I am not really bothered  I if they  go back to £95k I can sell them into my company with no CGT

    But the cash flow is very welcome

    and the cashflow is now building houses for cash

    You have to think long term in this game.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Thanks a lot for the advice  - Selling them into your own company is an interesting way of dealing with it.  Is your company a LTD property company or is that irrelevant?

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    Ltd Co

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.